Math Problem Statement
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Here is your data. Periodic deposit: $? at the end of each year, rate: 4% compounded annually, time: 16 years, financial goal: $150000. Determine the periodic deposit in $. (do not round until the final answer. Then round up to the nearest dollar as needed.)
Solution
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Future Value of an Annuity
Interest Compounding
Algebra
Formulas
Future Value of an Ordinary Annuity: FV = P × ((1 + r)^t - 1) / r
Rearranged to solve for periodic deposit: P = (FV × r) / ((1 + r)^t - 1)
Theorems
Future Value of Annuity Formula
Suitable Grade Level
Grades 10-12
Related Recommendation
Determine Periodic Deposit for a $15000 Goal with Compound Interest
Determine the Periodic Deposit for a $15,000 Financial Goal with 2.5% Compounded Quarterly Over 4 Years
Calculate Periodic Deposit to Reach $210,000 Financial Goal with 5.5% Interest Over 14 Years
Monthly Deposit Calculation for $400,000 Retirement Goal with 5% Interest
Calculate Periodic Deposit and Interest for Financial Goal of $120,000